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In the last couple of years, cryptocurrency has seen a sort of a renaissance, as interest in crypto has seen a resurgence. Thanks to the 2020 drop in stock value, many investors, seasoned, and new, began looking at alternative routes of investment, and eventually found themselves to the crypto market.
The number of crypto investors has grown rapidly in recent years, with the current number of investors worldwide numbering in the millions. Not to mention, the number of investors is expected to increase in the future, as it seems that younger people, such as millennials and Gen Z-ers, were far more likely to invest in cryptocurrency, than any other, more traditional investment option, even before the 2020 economic collapse.
But, with a rise in popularity, comes the downside of prevailing myths resurfacing. Bitcoin, and cryptocurrency in general, has had to deal with slander, and negative myth since its inception. Of course, criticism is entirely fair, but unfortunately, most of the criticism directed at cryptocurrency comes from either misunderstanding, or malice. In this article we will take a look at a few myths regarding cryptocurrency, and debunk them.
Cryptocurrency is not Profitable
The first myth, which has prevailed since the initial release of Bitcoin in 2009. The claim is that Bitcoin is not a profitable investment, and that crypto investors are throwing their money away. This idea stems from the fact that, when originally released, Bitcoin’s price was below $1. Perhaps the criticism was fair back in 2009, when cryptocurrency was new, and uncertain. However, the criticism holds no water in 2021, when Bitcoin’s price has risen to a single unit being worth $35.000.
Many everyday people, working nine-to-five jobs have, in the past 12 years, become overnight millionaires thanks to their bitcoin investments. Celebrities like 50 Cent have made millions of dollars off of bitcoin, and even companies like Tesla are beginning to embrace bitcoin, allowing for cryptocurrency purchases, and even making investments. Not to mention the hundreds of users on apps like BitIQ, who have left glowing reviews, vouching for the quality of crypto trading sites.
Of course, the crypto market is volatile, and fluctuating, but the same can be said for any investment market, and even the stock market has had a storied history of fluctuations, and volatility.
Cryptocurrency is Illegal, or used for Illicit Activity
Unlike the above mentioned myth, this one stems from a misunderstanding of what cryptocurrency is. Perhaps the misunderstanding stems from the name itself. “Crypto” does have a rather dangerous sound to it. The name, however, stems from the cryptographic encryption technology that cryptocurrency uses to keep transactions safe, secure, and anonymous.
Related to this, many people also believe that cryptocurrency is primarily used for illicit activity. This is simply not true. Most cryptocurrency transactions are used to purchase random, everyday things, like old video game consoles, computer parts, and now that Starbucks is allowing bitcoin payment, Pumpkin Spice Lattes.
It is true, that at one point, online black markets like Silk Road adopted cryptocurrency as a viable payment method, thanks to the anonymity it provides, however it is important to note a few things. Number one, not everyone on Silk Road used cryptocurrency to make purchases, most users of cryptocurrency do not use their assets for illegal activity, and lastly, most importantly, black markets have existed since far before cryptocurrency, and will most likely continue to exist in the future, whether cryptocurrency is around or not.
Cryptocurrency is a Scam
Another myth which stems from ignorance. While there have been scams involving cryptocurrencies, mainly in the form of fraudulent ICOs, scams like this have existed since far before cryptocurrency. Cryptocurrency is just another way that scammers have to try and grift good people. Crypto investors, however, should be savvy enough to do research and be cautious of anyone promising them deals too good to be true.